Sports minister suggests controversial football insolvency rule will go
The minister for sport Hugh Robertson has suggested the controversial insolvency rule which prioritises some creditors, will go
A CONTROVERSIAL football insolvency rule could go, the minister for sport has suggested.
Hugh Robertson (pictured above) made the submission in an Evening Standard interview, that the insolvency rule, which prioritises payment to some creditors over others, could stop being used.
Currently, if a club enters administration, they are bound by the football creditor rule, meaning football creditors – such as players and managers – will be paid in full and the remaining money divided between the creditors including HM Revenue & Customs.
Robertson said the Select Committee, which is currently looking at football governance, will also examine the football creditor rule carefully. He added he would be “very surprised” if changes were not made.
HMRC is due to begin a court battle against the Premier League and Football Association later this year over the rule, which it believes is “unlawful”.
(Picture © Department for Culture, Media and Sport)